Browse Tag by investing
mumbai

CrowdSourced on Twitter : Best Investing Books for Investors and Traders

Want to thank everyone who partcipated, Sharing the results of the CrowdSourced Best Investing books, I’m looking forward to read at least 1 Book per month and add to my GoodReads and hopefully inspire and encourage others in my network to do the same.

Do feel free to share and Happy Reading and Happy New Year. 🖖🖖

 

 

mumbai

An interesting perspective…

 

By 1999, 49% of Americans Owned Equities, this Percentage was just 3% in 1980 .These 20 years was also the Time when Warren buffett, Paul Tudor Jones, George Soros were Created.

🇮🇳 In 2017 only 3% Indian owns Equities..

📈

In 1979, the BSE Index was 100.*

Today it is over 33,000.

That is a return of over 17% per annum.

If we were to add back dividends received and assume that they were to be reinvested in the BSE-30 Index, then the return is nearly 20% per annum.

Over the past 37 years, the Indian economy has grown by a real rate of GDP of 6.3% on average.

Inflation, as measured by the CPI, has been in the 8% range.

Add the two together and you get 6.3% + 8% = 14.3%

Let’s round that down to 14%.

This is the approximate rate of growth of activity in the overall economy, taking into account the level of prices of various goods and services at that point in time. This is also called the nominal rate of growth in GDP.

So, the economy grew by 14% per annum for the past 37 years and the BSE-30 Index grew by 20% per annum.

Now if, over the next 33 years, the Indian economy is to grow by, say, 6% per annum and inflation is to be, say, 5% per annum then the nominal rate of GDP for the next 33 years will be = 6% + 5% = 11%.

If a 14% nominal rate of growth in the economy between 1980 and now resulted in a 20% average per annum growth in the Index over the past 37 years, then what should a 11% per annum growth in nominal GDP result in over the next 33 years – till the year 2050?

Sensex 4,076,470 doesn’t seem extraordinary now, does it?

“If the bull market journey is from Mumbai to Delhi, we have probably reached only Borivali”
– Rakesh Jhunjhunwala

poker

The Pokerstars Evening

I consider myself to be an average Poker player, who hasn’t gone beyond the Online leagues. I was super excited to get an invite to interact and play with Aditya Agarwal,  one of the best Poker player in the World.

Cool People Wear Dark Glasses 🙂
Maybe Harish cracked a joke.

His story is pretty much inspiring for Traders & Punters like me ,  He has been playing World Series Professional Poker since he was 21 and still in the Game.

Poker player Aditya Agarwal spent his childhood and school years in Darjeeling, India. He moved to the US to study at Drexel University, first enrolling for a degree in Engineering, before switching to Marketing. Just like students at every other college across America in 2003, Aditya and his peers saw poker being played on yeboyescasino.co.za and on TV for millions of dollars, and they wanted in on the action. By the time Aditya graduated, he was already a full-time poker pro.

What I really liked about his Poker strategy was to go slow, wait for your Good Cards and Not play every round for the sake of Playing or Playing and then hoping and praying .

This rang a Bell and reminded me of something what I do on a regular basis..Trading.

I would definitely consider Poker a must do activity for Trader’s along with Yoga and Meditation… Just like Trading Poker is  an ultimate Mind Game of Money.  

Poker can in my opinion can definitely make you a better trader.

The beautiful thing about Trading is that you never have to trade when you don’t have great  cards (great trade setup).

Both  are about Risk Management, Understanding your environment, Staying in the Game and going for the kill when your chips are good while being cool & humble  about it.

Poker Hand Rankings

I personally believe that Poker will go a long way in India,  Reforms and legislation will happen soon, Tourism and Entertainment needs a fillip.

Million of Indians head to Macau, Singapore, Las Vegas to play and enrich foreign government in Taxes while India struggles for Tourism .

I’m Bullish on Change, After All aren’t we are a Nation with a really long history of gambling.

Poker Hacks being discussed.
Game On….
Selfie tho bannta hai ..
The Winners 🙂

 

mumbai

Pearls of Financial Wisdom

1) Bonds are for storing wealth and equities are for creation of wealth.

2) In my opinion, the biggest asset one can have is zero debt.

3) The greatest discipline in personal finance is living below your means.

4) As Ben Carlson says, emotions cannot be back tested. That’s why past bear market always looks like opportunities and future ones scary.

5) Early financial independence and early retirement are completely different. To me, the former is a blessing and the latter is a curse.

6) Don’t think how it would have been if you’ve started 10 years ago. Start today and visualise how you would feel 10 years from now.

7) The neighbourhood we live determines our life style & spending. Need to be careful in choosing one which matches our goals and personality.

8) Paying minimum balance regularly on credit card is the maximum sign that you’re getting into debt trap.

9) Many are long term investors till next bear market.

10) Don’t take aggressive bets. Take measured risk. Remember one blunder can push you back by a decade or more in terms of wealth.

11) Big money can be made through high savings, wise investing and lots of patience.

12) One sign of progress in individual investor’s portfolio is no churn or very less churn.

13) Trying to get rich fast is a foolproof way to lose what we have.

14) Losing opportunities is far better than losing money. Don’t invest in fads.

15) ‘Making as much money as quickly as possible’ is not an investment strategy. Unfortunately for most of us that is the strategy.

16) Aggressive strategy cannot be a substitute for high savings. Save high and take moderate risk than saving less and taking high risk.

17) The day we realise not losing is as important as winning; we would stop blindly chasing returns.

18) Good periods are more than bad periods. By not timing, though we go through bad periods, do not miss even a single good period.

19) We’ll stop looking for quick money the moment we consider stocks as businesses and realise that our wealth grows in line with business growth.

20) There are periods of high returns, low returns, no returns and negative returns. We need to go through all these to get long term returns.

21) Listening to market forecasts is not only useless but can be very harmful too if you start acting on them.

22) The hard truth is only around 3% of our population are in a position to aspire for financial independence. Don’t waste this rare privilege.

mumbai

Look around your room, Your next big multibagger investment could be around you.

Look around your room, Your next big multibagger investment could be around you. 🖖 via

 

mumbai

👉FIVE rules which an INVESTOR should follow?

Rule#1 Use Banks for financial transactions, short term cash management and credit management.

Rule #2 Use Insurance to cover the risks.

Rule #3 Use Gold to hedge your currency (i.e. Rupee).

Rule#4 Use Real Estate for consumption (Residence) or regular income (rent).

Rule#5 Use Capital market to create long term wealth.

Unfortunately, it happens otherwise.

People tend to use Banks and Insurances for investments,

Gold for consumption (Jewelleries ),

Real Estate for long term wealth creation and

Capital Markets for speculation and short term gain.

Needless to say, why they fail to create wealth.

mumbai

Jerry Pinto’s Words of Advice – Simplified in Investing Hacks

I’ve simplified the prudent advice given by Jerry Pinto to all young people starting out on their careers by adding Investing Hacks to it.
1. Start investing, in small amounts.  –
  • SIP in Mutual Funds starts at Rs 500
2. Buy your own house. –
  • Go for your 1st House – Home Loan rates are at 8.5%, Inflation is low, Rebates by Govt, Infra is picking up, EMI’s will fall further, Rental income is between 3-5%
3. Cut up that credit card.  –
  • You pay higher than Pathan Interest Rates, Credit Card Co’s charge between 38% to 42% Penal & Anal Interest Rates
4. Park your debit card at home. Use cash.
  •   I Disagree on this point, Use Wallets like Paytm, Freecharge.. Get points, offers etc, Maximize it. 
5. Be punctual. Taxis take most of your cash. –
  • Avoid Ola, Uber, Taxi’s  during non peak hours or whenever possible.  Average Ola Trip of 300-500 can buy you around 6-10 shares on IDFC Bank or 5 Shares of Ashok Leyland.
6. Take a dabba. Even if it’s a sandwich and a fruit. Restaurant mark-ups are 300 per cent.
  • – Health & Term insurance premiums keep rising based on your Cholesterol & Sugar Levels, Home Food hasn’t troubled anyone. 
7. Work hard.  –
  • Also let your Money Work Harder for you, Invest for Long Term
8. Show up. The more you’re seen, the more you’re remembered. When it comes to promotion time, no one should ask, “But who is she?”
  •  Do the Opposite while Investing, Stay humble, Stay Grounded.
9. Be positive. Smile. Spread good energy. No one likes a Sad Sack coworker.
  • Hang around with Happy & Lucky Investors & People smarter and better than you.
10. Remember, it’s not who you are. It’s what you do.
  •    Start Small,Go Big or Go home.
 
India is the best place to stay invested, We are in the middle of a long term secular growth story. Be a proud participant in the India Story.
 
You can reach me at @bombaylives or email me Satish@bombaylives.com

🖖

mumbai

The Making of Coffee Can Portfolio – My Attempt

The Making of Coffee Can Portfolio – My Attempt

The Making of Coffee Can Portfolio – My Attempt

Posted by Bombaylives on Saturday, April 15, 2017

mumbai

Financial Mantra for Life.

Welcome to new financial year.

Few thumb rules help in financial decisions-

1) 100 minus our age should be our equity allocation.
2)Minimum 20 times of our yearly income should be our retirement fund.
3) We all should save minimum 30% of our income
4) Cost of our house should not be more than 6 to 8 times of our family income.
5) EMI should not be more than 35% of our gross monthly income.
6) Rate of returns ideally should beat inflation.
7) Rule of 72 & 115……
How many years double or triple our money ?
* 72/Returns= double in yrs
* 115/ returns = triple in yrs.
8) Rule of 70= Future buying power of your money.
*70/Inflation= Number. of yrs.
9) Life cover should be Minimum 10 times of your yearly income.
10) We should keep 3 to 6 months expenses as an emergency fund.
11) we should have minimum Mediclaim of 10 lakhs.

Moral-
People want shortcuts, that’s why thumb rules find some place.
Wish you all disciplined investing & start investing.